Bitcoin Drops 14% in Three Days as Whales Take Profits: Is the Bull Run Over?
Highlights:
- Bitcoin has fallen 14% from its all-time high (ATH) of $108,353 on December 17.
- The drop is linked to the Federal Reserve’s hawkish stance on rate cuts for 2025.
- On-chain data indicates whales are selling and booking profits, adding downward pressure.
Bitcoin’s price has experienced a steep 14% decline over three days, sparking concerns that the bull run may be losing momentum. This drop marks the third significant liquidation event in December, wiping out over $1 billion in leveraged positions. Is this the end of Bitcoin’s rally, or can the uptrend recover?
What Triggered Bitcoin’s Drop? The Federal Reserve’s decision to reduce 2025 rate cuts from four to two is a major factor behind Bitcoin’s recent crash. BTC set a new ATH of $108,353 on December 17 but displayed a doji candlestick pattern, signaling trend exhaustion. By December 19, the price had fallen to a low of $92,232, with $844 million in longs and $166 million in shorts liquidated. 
Whale Activity Fuels Selling Pressure: On-chain data from Santiment reveals a surge in large transactions exceeding $100,000 and $1 million during recent rallies, including spikes on November 22, December 5, and December 16. These transactions coincide with double-digit corrections, suggesting that whales have been selling after price increases. 
The Network Realized Profit/Loss (NPL) indicator further supports this, showing profit-taking spikes on the same dates. This behavior highlights whales cashing out during bullish momentum. 
Is the Bitcoin Bull Run Over? Bitcoin’s daily chart suggests its bullish market structure of higher highs and higher lows has been disrupted. For the bull run to continue, Bitcoin must reclaim its ATH of $108,353 with a decisive daily close above this level. Key challenges include:
- $100,000 Psychological Resistance: Turning this level into support is crucial for a recovery.
- Daily Imbalance Zone: BTC must overcome the resistance between $102,747 and $105,363.
If Bitcoin clears these hurdles, it could set a new higher high and maintain its bullish trajectory. Failure to do so, however, could see the price drop to $90,000 or even retest support at $87,333. 
Looking Ahead: While the bull run isn’t definitively over, the immediate outlook depends on Bitcoin’s ability to recover above key levels. A lack of buying pressure could signal further declines, while sustained demand might reignite the uptrend, potentially leading to new highs. Investors are closely monitoring whale activity and market conditions for signs of a reversal.
